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Last Week

Bad Year for Stocks: The stock market ended its worst year in nearly two decades. The Nasdaq Composite Index finished down 39%, its steepest annual decline ever, after posting a record 86% gain the year before. The Dow Jones Industrial Average fell 6.2% for the year, its worst performance since 1981. The broader Standard & Poor's 500 stock index fell 10%, its poorest showing since 1977.

Retailers' Woes: Montgomery Ward filed for Chapter 11 bankruptcy-court protection and said it will close its 250 stores and 10 distribution centers. The demise of the 128-year-old retailer may result in the layoff of 28,000 workers. Meanwhile, leading retailers said their same-store sales for the holiday-shopping season were flat or up only slightly.

Consumer Outlook Dims: Consumer confidence sank this month to its lowest level in two years, hurt by the slumping stock market and slowing economy. The November index of leading indicators also fell, suggesting slower growth in the first half of the new year.

More Profit Warnings:Network Associates
, the computer-network security company, expects to report a fourth-quarter loss, in part because of the slowing economy.
Union Pacific
warned about weaker earnings.

Briefly:FedEx
and
United Parcel Service
plan larger-than-expected rate increases because of slowing growth in the delivery business... Stock mutual funds reported a 54% drop in inflows of new money last month, the biggest decline in nearly two years...U.S. firms plan to slow research-and-development spending next year, particularly in high tech, a study says.

This Week

Market Holiday Hours: The stock and bond markets will be closed tomorrow for New Year's Day. The markets will have regular hours the rest of the week.

Economy Watch: December's employment report, widely watched by the markets, will be issued on Friday, as will November new-home sales. The nation's purchasing managers release their December report on Tuesday. November construction spending is out on Wednesday, and the factory-orders report comes Thursday.